- Nvidia has lost about $ 5.5 billion in costs and $ 15 billion in income due to H20 export bans
- CEO Jensen Huang celebrates Trump’s decision to reverse certain restrictions
- The AI market in China could reach $ 50 billion this year
Nvidia CEO, Jensen Huang, criticized the US export controls of flea to China, calling them a “failure” that ended up costing billions of American companies.
Speaking during the computex event of this year, the chief praised Trump’s decision to modify the export borders of the Biden era (via PK Press Club), declaring that “President Trump realizes that this is exactly the wrong goal”.
In April, the most precious flea manufacturer in the world said that it would accumulate about $ 5.5 billion in costs only linked to the export of H20 fleas to China and other limited nations.
Nvidia praises the ban on the ban on flea exports
Huang said the original export hypotheses were defective and did not stop research on AI in China, which continues with heavy local investments. However, while the country continues practically not affected, Nvidia’s market share in China increased from 95% to 50% during the period which followed Biden export restrictions.
Intense competition from national companies, like Huawei, has already filled the gaps left by American suppliers.
The CEO explained that the Chinese AI market could reach $ 50 billion this year, marking a major opportunity for Nvidia if access to the nation is restored by lifted restrictions. In addition to the $ 5.5 billion in estimated costs, Nvidia expected $ 15 billion in lost income due to export restrictions on H20 chips.
Nvidia also develops a consistent version of its Blackwell AI chip with degraded memory to respond to American restrictions.
Despite the reversal of certain Biden era bans, the Trump administration plans to replace the export system on several levels with a global license regime for a better lever effect in commercial negotiations. Earlier this week, China responded to American actions by demanding the end of “discriminatory” policies.
“The AI is progressing at a light speed while the IA agent and the physical AI have prepared the ground for the next wave of AI to revolutionize the most important industries,” said Huang in the last report on the profits of the company, when he revealed a 78% increase of one year on the other of quarterly income.
